Crediting Guadalajara as a hotbed of innovation

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The necessity for prime manufacturing and engineering expertise within the automotive sector has reached a peak as automakers, together with Tier 1 and a couple of suppliers, are more and more delivering on the various guarantees of electrification. Success requires cautious maneuvering round seemingly limitless expertise, provide chain and manufacturing speeds.

Because of this, amongst others, Molex just lately opened a plant in Guadalajara, Mexico, to speed up innovation on behalf of automotive, transportation and industrial clients in North America and globally. Whereas the corporate’s manufacturing presence in Mexico has grown steadily for greater than half a century, the transfer goals to alleviate complicated challenges in automobile connectivity, electrification, battery administration, useful security and zone architectures.

By doubling the brand new facility, which is sort of twice the dimensions of the present facility in Guadalajara, Molex beneficial properties direct entry to superior manufacturing capabilities and a various pool of extremely skilled engineers. This permits us to increase and complement our engineering sources throughout North America, Asia and Europe.

Joe Nelligan, CEO of Molex, welcomes native dignitaries, staff and guests to the grand opening of the corporate’s second plant in Guadalajara. (Supply: Molex)

In line with the Worldwide Commerce Administration (ITA), Mexico produces roughly 3 million autos yearly, of which 76% are destined for the US. An extended record of automakers have vegetation throughout the nation, together with Audi, BMW, Ford, Basic Motors, Honda, Hyundai, Kia, Mazda, Mercedes Benz, Nissan, Stellantis, Toyota and Volkswagen. As well as, greater than 1,100 Tier 1 and a number of other thousand Tier 2 and Tier 3 auto components producers and suppliers function in Mexico.

Anybody favoring Mexico as a labor arbitration answer is lacking the purpose. This nation clearly has a lot to supply. Mexico’s emphasis on STEM training is contributing to the fast progress of engineering expertise. In metro Guadalajara alone, greater than 20 universities supply engineering applications centered on electronics, software program, renewable vitality applied sciences, and synthetic intelligence.

Mexico additionally gives glorious alternatives for “nearshoring,” which strikes manufacturing nearer to remaining delivery locations. Commerce agreements, such because the US-Mexico-Canada Settlement (USMCA), present incentives that may scale back manufacturing prices whereas strengthening an organization’s presence in North America.

Nevertheless, what stands out is Mexico’s rising popularity because the “Silicon Valley of the South.” Particularly, Guadalajara has develop into a hotbed of innovation, fostering high-end product improvement and entrepreneurial considering, together with elevated overseas and enterprise capital funding. In line with the second version of the Credit score Suisse Mexico Nearshoring Tracker revealed in October, Volkswagen, Flex Americas, Continental, Bosch and Molex contributed essentially the most to the $2 billion invested in the course of the quarter.

Molex’s choice to increase south of the US border got here lengthy earlier than the pandemic and the large provide chain disruptions that caught many firms off guard. The corporate’s technique to take a position $130 million in a second plant in Guadalajara emerged from ongoing discussions about increasing provide chains, shortening supply instances, localizing manufacturing and accessing specialised experience to drive electrification.

These objectives are aligned with Molex’s plan to embrace the chances of the manufacturing facility of the long run, together with manufacturing line automation, superior materials dealing with, robotics, superior design and meeting, digital twins, synthetic intelligence, predictive analytics, machine studying and different data-driven digital applied sciences, instruments and processes.

Ceremonial opening of the brand new Molex manufacturing facility in Guadalajara. From left to proper: Dawson Schiller, Joe Nelligan and Javier Sanchez of Molex; Hilda Cachux Andrade, Mayor of Zacoalco de Torres; and Francisco Xavier Orendáin De Obeso, Basic Strategic Coordinator for Progress and Financial Improvement for the State of Jalisco. (Supply: Molex)

The Guadalajara enlargement additionally allowed the corporate to use experience from working with producers of subtle medical gadgets, high-speed networks and highly effective knowledge heart options — all key to the event of tomorrow’s electrical autos, superior driver help programs (ADAS) and vehicle-to-everything (V2X) ) communications. We will now simply faucet right into a area wealthy in related consumer experiences, confirmed engineering expertise and a complete dedication to R&D.

Guadalajara has a powerful foothold in electronics, medical gadgets and automotive manufacturing. The largest EMS gamers — together with Jabil, Flex and Sanmina, amongst others — have world-class factories right here. Many tech titans in software program, {hardware} and digital applied sciences are additionally gaining floor, which bodes nicely for the automotive trade because the vehicles of the long run will operate extra like knowledge facilities on wheels.

Equally vital is the rise in on-site testing capabilities, such because the reliability and metrology lab that Molex operates in Guadalajara. The purpose is to empower native engineers to enhance product design and speed up improvement cycles by utilizing testing, simulation and evaluation that scale back prices and lead time. In collaboration with clients and colleagues, Molex is dedicated to Mexico for the lengthy haul — and excited to find new and artistic methods to constantly enhance buyer worth.

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